Bitcoin Price Slides for Fifth Day as Risk-Off Sentiment Weighs on Prices: Analyst

Core Insights - Bitcoin has experienced a decline for five consecutive sessions, struggling to maintain levels above $92,000 [1][9] - The decline is attributed to profit-taking and a shift towards risk aversion due to political and macroeconomic uncertainties [3][6] Market Dynamics - Despite the pullback, market damage appears limited, with low futures liquidations indicating a lack of panic and suggesting a consolidation phase [4] - There are signs of underlying demand, as US spot Bitcoin exchange-traded funds recorded their strongest week of net inflows since October, following a $20 billion futures liquidation event [5] - On-chain metrics show an increase in addresses holding between 1,000 and 10,000 BTC, rising by 28 over the past week [5] Leverage and Sentiment - Crypto futures open interest has decreased by approximately $9 billion from January highs, reflecting reduced leverage and a shift towards spot buying [6] - Renewed "risk-off" sentiment is limiting Bitcoin's rebound, primarily due to concerns surrounding the Federal Reserve's political turmoil [6][9] Institutional Impact - Reports of a criminal investigation involving Fed Chair Jerome Powell have raised questions about the central bank's independence, affecting market sentiment [6][7] - Analysts suggest that a perceived erosion of Fed autonomy could weaken confidence in US assets, prompting a diversification towards decentralized assets like Bitcoin and hard assets like gold [7][8]